A visual representation of Bitcoin.
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Bitcoin hit a new all-time high on Wednesday as investors hailed the successful launch of the first ever publicly traded US Bitcoin futures fund.
The world's largest cryptocurrency climbed about 3% to $ 66,390.75 by 11:20 a.m. ET, beating an earlier record of $ 64,899 set in mid-April.
“The key here is whether we are able to establish support above $ 65,000. If we can, the classic fourth quarter crypto rallies we've seen for most years could lead Bitcoin to some of the higher price predictions we've seen in recent months. However, if the selling pressure gets out of hand, it could be a while before our next surge comes off, "said Jesse Proudman, CEO of crypto-robo-advisor Makara.
Bullish comments from a legendary trader raised the mood on Wednesday. Billionaire investor Paul Tudor Jones called crypto his preferred inflation hedge over gold.
“Bitcoin would be a great hedge. Crypto would be a great hedge, ”Jones told CNBC's“ Squawk Box ”on Wednesday. "There is a plan for crypto and it is clearly winning the race against gold right now … I think that would also be a very good inflation hedge. It would be my favorite over gold right now."
Ethereum also rose about 6% to break the $ 4,000 mark again. The world's second largest cryptocurrency traded at $ 4,022.27, nearing its all-time high of 4,380 in May.
The ProShares Bitcoin Strategy ETF, which tracks bitcoin futures contracts speculating on the future price of the cryptocurrency, rose nearly 5% on its first day of trading on Tuesday.
Not everyone in the crypto market was impressed. Several Bitcoin investors want an ETF that tracks spot prices and not futures.
Beginners will have to grapple with terms like "contango," where the futures price of a commodity is higher than its spot price, and "backwardation," which is essentially the opposite.
"More products are great, but I just don't see the point in investing in futures-based Bitcoin ETFs when you can buy the asset on the spot market," said Jodie Gunzberg, CEO of CoinDesk Indexes.
"It's not like oil or cattle that is impossible for most investors to physically hold. It's more like gold that can be easily held. Except that the cost is more like oil."
Still, it's a milestone for the burgeoning crypto industry that has long been pushing for greater adoption of Bitcoin and other digital currencies on Wall Street.
– CNBC's Tanaya Macheel contributed to the coverage.